Brexit latest: EU starts mind games calling on nations and firms to prepare for NO DEAL

Draft conclusions for next week’s major EU summit warn contingency planning for a hard exit in March 2019 must be accelerated across the bloc.

The document says: “The European Council renews its call upon member states and all stakeholders to step up their work on preparedness at all levels and for all outcomes.”

Frustration is growing in European capitals over the slow pace of negotiations on Ireland and the future relationship.

But British officials are fed up with inflexible EU negotiators blocking a creative discussion about Brexit solutions, particularly over the commitment for a “backstop” to avoid a hard border in the island of Ireland if other solutions fail.

While the European Commission’s proposed backstop would keep Northern Ireland under EU rules even as the rest of Britain went its own way, Theresa May has instead proposed a time-limited backstop that would apply to the whole UK.

In response to the EU draft summit conclusions, Mrs May’s spokesman said: “We have put forward a proposal in relation to the backstop and Northern Ireland. We look forward to discussing that with the EU further.”

Michel Barnier, the EU’s chief negotiator, has dismissed the UK proposals on the backstop as flawed and incomplete.

Mr Barnier has ruled out UK participation in the European Arrest Warrant and full access to EU law-enforcement databases and blamed the British Government’s “red lines” on issues such as the role of the European Court of Justice.

He said: “They want to maintain all the benefits of the current relationship, while leaving the EU regulatory, supervision and application framework.

“And they try to blame us for the consequences of their choice.

“Once again, we will not be drawn into this blame game. It would mean wasting time we don’t have.”